https://www.taxtmi.com/caselaws?id=49606 Compensation for termination of agency rights was characterised as a capital receipt because the terminated agency rights constituted an enduring asset forming part of the assessee's fixed capital or profit making apparatus rather than ordinary trading stock. The payment was treated as consideration for sterilisation pro tanto of that capital asset, not as an adjustment in the ordinary course of business or replacement of prospective commissions; accordingly the sum received is not taxable as revenue but qualifies as capital in nature. en-us Fri, 20 Mar 1959 00:00:00 +0530 Thu, 04 Sep 2014 17:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49606 Compensation for termination of agency rights was characterised as a capital receipt because the terminated agency rights constituted an enduring asset forming part of the assessee's fixed capital or profit making apparatus rather than ordinary trading stock. The payment was treated as consideration for sterilisation pro tanto of that capital asset, not as an adjustment in the ordinary course of business or replacement of prospective commissions; accordingly the sum received is not taxable as revenue but qualifies as capital in nature. Case-Laws Income Tax Fri, 20 Mar 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49606